Presentation Strategic management & Business

policy

Group members: Tran Kim Ngan (Jen)

Tran Anh Thu (Candy)

Introduction

Dell, Inc. was established in 1984 by Michael Dell

In 1985, he began manufacturing his own computers and marketed them through ads in computer trade publication.

After that, the company kept growing up to be the world’s leading direct marketer of personal computers and one of the top five PC vendors in the world.

In 1996, Dell offered its PCs via the Internet at dell.com.

2003 - a diverse supplier of technology products and services and to keep its position at the top of Fortune’s list of “Most Admired Companies” and growing tremendously.

Current situation

Declining sale

Customer service

Product quality

Internal analysis - The strengths of Dell

Dell is the master of process engineering and supply chain management.

A leading company in the world, which apply direct model efficiently.

A strong and famous brand name.

Dell was structured into three different geographic

business units on worldwide.

NO retail stores, giving them a huge cost advantage.

Internal analysis – The weaknesses of Dell

Dell doesn’t have any proprietary technology.

Dell has no physical locations for returns, service, or repairs.

Dell also has some problems with the college student segment.

IFAS (Internal Factors Analysis Summary) table

Key internal factors Weight Rating Weighted score Comments

Strengths Dell is the master of process engineering and

supply chain management. Dell is a leading company in the world, which apply

direct model efficiently. Dell already had a strong and famous brand name. Dell was structured into three different geographic

business units on worldwide. Dell has NO retail stores, giving them a huge cost

advantage.

Weaknesses Dell doesn’t have any proprietary technology. Dell has no physical locations for returns, service,

or repairs. Dell also has some problems with the college

student segment.

0.15

0.15

0.15

0.10.1

0.15

0.1

0.1

5

5

5

45

5

4

3

0.75

0.75

0.75

0.40.5

0.75

0.4

0.3

Making a lot of profits.

Dell will has lower percentage to reach the customers than its competitors.

Total scores 1.00 4.55

External analysis

Policies:

Government regulations and legal issues determining the conditions under which companies have to operate .

Many countries still have restrictive policies that are maintained to protect domestic manufacturers and production.

To establish partnerships with local companies

External analysis (cont)

Economic:

The growth rate of the computer industry is also slowing down.

Outmoded is a pulsating reality in a computer business

Price difference among brands

External analysis (cont)

Social: Customers are getting more and more educated

about computers. Young generation Demand for laptops is growing.

Technology: New software, new hardware and computer

accessories are introduced at a lightning speed.

EFAS (External Factors Analysis Summary) table

Key internal factors Weight RatingWeighted

ScoreComments

Opportunities: New customer generation with well-

educated in computer. Demand for laptops is growing

compare to demand for desktops. Customers feel convenience in

shopping online. Faster technological development. Threats:

Apple, HP, VAIO as the biggest threat for Dell.

Outmoded is a pulsating reality in a computer business.

Price difference among brands is getting smaller.

New software, new hardware and computer accessories are changing day by day.

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0.15

0.050.15

0.15

0.1

0.1

0.15

5

5

34

5

4

3

5

0.75

0.75

0.150.6

0.75

0.4

0.3

0.75

Convenience for customers to get information at Dell’s website.

A good chance for Dell to expand to another segment

Dell has to work doubly hard to

differentiate itself. Produce products those are high in

quality but low in price. Dell’s price-conscious growing

customer base. Always on the lookout for new things

or introduce new computer systems.

Total 1.00 4.45

ANALYSIS OF STRATEGIC FACTORS

Key Strategic Factors Weight RatingWeighted

Score

DurationComments

S I L

Dell is the master of process engineering and supply chain management.(S)

Dell is a leading company in the world, which apply direct model efficiently.(S)

Dell already had a strong and famous brand name.(S)

Dell doesn’t have any proprietary technology.(W)

Dell has no physical locations for returns, service, or repairs.(W)

New customer generation with well-educated in computer.(O)

Demand for laptops is growing compare to demand for desktops.(O)

Apple, HP, VAIO as the biggest threat for Dell.(T)

New software, new hardware and computer accessories are changing day by day.(T)

0.15

0.150.050.1

0.10.1

0.05

0.150.15

5

534

54

3

54

0.75

0.750.150.6

0.750.4

0.15

0.750.6

X

X

XX

XX

X

X

XX

XX

X

XX

Dell should open some physical locations to provide customers better services.

Dell should focus on R&D to adapt with the fast change in IT sector.

TOTAL SCORES 1.00 4.9

Alternatives & Recommendations

Be more innovative in producing more functional PCs,

improve the attractiveness on its design, which are

suitable for customers from both business and college

segments.

More focus on improving the internal performance:

Improve the quality of products instead of quantity of

producing.

Focus on delivery department and training the call centre‘s

employees to improve their knowledge about IT, so that, they

can help customers to solve their problems efficiently.

Implementation

Implement customer complete database solution - hardware and software

All IT training initiatives should be linked to the technologies that support the company’s mission and goals.

The Information Technology departmental goals must then be aligned to the overall company goals.

Technology Train Program (TTP).

Evaluation and control

Determine what to measure: Dell’s performance of quality and customers services

after purchasing.

Establish standards of performance: Design, build and customize products and services. To be the best at what they do and make a profit. Great customer service keeps them coming back time

and time again. The quality of the product has to be outstanding and

better than other products in the market. Know what people are looking for, and who is, to

establish and advertise to target market. Rapid assembly – a PC in 5 seconds.

Evaluation and control (cont)

Measure actual performance - via the customers’ complaints Poor customer service. Bad quality products. Delivery. Call service centre.

Compare actual performance with the standard: not the same at it standards.

Take corrective action-as the implementation was stated.

Conclusion

The market trends in the personal computer industry, for

laptops in particular, are being even changing consumer

needs, wants, and demands.

Dell Computer Corporation are forced into a constant

state of adaption in order to satisfy their customers.

Taking full advantage of their strengths.

Paying close attention to their weaknesses.

Identifying both opportunities and threats

from the macro-environment.